Domestic bonds of Latin American issuers available on Cbonds website - Cbonds release

Dear
Cbonds users! We are happy to announce that Cbonds expanded its coverage of
Latin American markets (http://cbonds.com/bondsearch/).
The website includes 4500 issues of domestic corporate and municipal bonds of
Latin American countries, with the total volume equal to 273 billion USD.

Characteristics
of the bond market

The main issuers in
the domestic corporate bond market of Latin America are the financial companies
(banks, leasing companies, financial holdings), among which Santander Leasing,
Dibens Leasing, and Banco Davivienda are notable in terms of total volume of
issues. The most popular currency of issues is the US dollar.

About half of the
Latin American issues have a floating coupon rate. Basically, these securities
are linked to the consumer price index, which is explained by macroeconomic
uncertainty and high inflation in many countries of the region.
Inflation-indexed bonds were most widely spread in Brazil and Colombia. Also,
the Latin American market is issuing bonds denominated in an alternative,
inflation-free currency (UVR, UYI and
others). For example, the issue of Credifamilia Compania de Financiamiento Comercial for 155 million UVR (http://cbonds.com/emissions/issue/269671).

Financial
market

In Latin America,
there are about 40 exchanges of various types. The largest bond
exchanges in Latin America are the BM&FBOVESPA, the Mexican Stock
Exchange, and the Colombia Stock Exchange.

The development of
Latin American financial markets takes place through the integration of
exchanges. As an example, we can take an integrated Latin American market
(MILA), which unites the exchanges of Mexico, Chile, Peru, and Colombia. This
platform is designed to simplify the access of foreign investors to local
markets and provide a wider choice of securities and issuers. In order to
develop the national financial market and attract the largest number of
companies, the main exchanges of Argentina are united under a common trading
platform known as BYMA (Bolsas y Mercados Argentinos).

Economy

In 2017,
economic activity in Latin America gradually began to recover after a long
period of recession. The decline in commodity prices in 2010-2015 led to a
reduction in the export revenues of the countries of the region, and as a
result, to the weakening of national currencies and the growth of inflation.
Today, Latin American countries are on the threshold of a new economic cycle,
when the export of raw materials ceases to be the main driver of economic
development. The compound growth rate of the region's GDP is estimated to be
1.2% in 2017 and 1.9% in 2018, according to experts. Along with this, there is a decline in
inflation to 4.2% and 3.5% in 2017 and 2018, respectively.

International
rating agencies assigned non-investment credit ratings to most Latin American
countries, which is caused by a drop in commodity prices and politically
volatile environment. However, the gradual improvement of the economic
situation helps raise the credit ratings of a series of countries. For example,
over the past few years, Argentina's credit rating has been improved from
Caa1/B-/RD to B2/B+/B. The highest credit ratings are assigned to countries
such as Chile – Aa3/A+/A, Peru – A3/BBB+/BBB+, Mexico – A3/BBB+/BBB+ (Moody's /
Standard & Poors / Fitch Ratings).

To ensure
long-term growth of the region, it is necessary to adopt measures that
facilitate the transition from a raw material export industry to a more
competitive innovative economy based on the production of high-value-added
products. The following factors are intended to ensure future economic growth:
overcoming political crises in a series of countries, reducing social
inequalities, fighting corruption, seeking new trading partners, and promoting
financial integration.

Coverage
of the Latin American market of domestic corporate and municipal bonds in the
Cbonds database

Country

Amount of issues of domestic corporate and municipal bonds in circulation

Traditionally,
for all issues, the following features
are available: bonds calculator, main placement parameters, payment schedules,
issue-related documents. Daily bonds quotes are also available.

Please
note that access to the website (http://cbonds.com/) is included in the Cbonds-Premium tariff. If you
don’t have access to Global.Cbonds yet, you can try it out and appreciate the
advantages of the website by applying for a trial access at (http://cbonds.com/about/paccess.php). The information is available in 5
languages: Russian, English, Italian, German and Spanish.